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Due to highly volatile raw material markets and an uncertain macro-level landscape, Flint Group is introducing a global price increase for its packaging, narrow web and sheet-fed customers.
Following a prolonged period of significant raw material cost inflation, force majeure announcements and changes in the supply outlook of raw materials for printing inks and varnishes, price increases of 4-7 percent are effective April 3, 2017.
Doug Aldred, president of the packaging, narrow web and sheet-fed division at Flint Group, said: ‘The increases will vary by product group and our business managers will be in contact with their customers over the next few days to discuss the details.’
On February 22, Flint Group announced price increases and a variable surcharge due to the supply constraints and price inflation seen in the global titanium dioxide (Ti02) market. Nonetheless, the security of supply for many ink-related raw materials has recently worsened in addition to the Ti02 issues, thus expediting a further general price increase announcement to cover the rising cost landscape.
Adhemur Pilar, president of Flint Group Latin America, added: ‘We have been subject to compelling volatility in our supply chain for some time now; our focus has always remained on securing product quality and long term availability. Unfortunately, this has led to the higher costs that we are now experiencing.’
Aldred emphasized: ‘Flint Group is working tirelessly to mitigate the costs of these dramatic increases in raw materials being passed to our valued customers by investigating alternative sources of supply and committing capital to efficiency projects. However, in such volatile conditions the Group has no option but to review the sustainability of current pricing models and adjust accordingly. Flint Group remains committed to supporting our customers in a responsible manner as a dedicated partner.’